Why do we use hindsight bias?

According to new research, hindsight bias -- the way our impression of how we acted or would have acted changes when we learn the outcome of an event -- is actually a by-product of a cognitive mechanism that allows us to unclutter our minds by discarding inaccurate information and embracing that which is correct.

How does hindsight bias affect memory?

Hindsight bias may cause distortions of memories of what was known or believed before an event occurred, and is a significant source of overconfidence regarding an individual's ability to predict the outcomes of future events.